Your Home Has A Smoke Detector. Are You Sure It's Really Working?

Now is the time to check your smoke alarms and carbon monoxide alarms. Daylight Savings Time has arrived and its a reminder for us to check our smoke alarms and also time to change the batteries.

An estimated 356,000 in-home fires caused more than $7 billion in U.S. residential property damage in 2009, according to data from the United States Fire Administration.

The fires caused more than 12,000 injuries, and killed more than 2,500 people in queens and nationwide.

Unfortunately, many of affected homes did have smoke detectors -- they just weren't working properly. This is why it's critically important to test your home's smoke detectors at least once annually.

When you test a smoke detector, you're making sure that the alarm will trigger in the event of a real-life fire. A proper test will confirm that the batteries have useful life, and that the device's smoke detection components are operating as expected.

To test your smoke detector, here's what to do :

1. Make a checklist of your home's smoke detectors
2. Go to the first smoke detector
3. Ask a helper to go to the farthest point from the detector within your home
4. Press the smoke detector's testing button up to 10 seconds to activate the alarm
5. Confirm with your helper that the alarm could be heard from his/her location
6. Note on the checklist whether the smoke detector worked, or needs replacement

You can also take your test a step further.

Just because the smoke detector's alarm can be heard from the farthest point in your house doesn't mean that the alarm will sound in the event of a real fire. Therefore, you may want to buy a "smoke test".

Smoke tests are aerosol cans that simulate a bona fide in-home fire. You can buy them for less than $15 at your local hardware store, or at Amazon.com. If your smoke detector fails to sound its alarm in the presence of a "real fire", make sure you replace it right away.

I want you to feel safe and stay safe. Simple things to do.

Till next time

The New York Real Estate Nurse

A Simple Explanation Of The Federal Reserve Statement (November 2, 2011 Edition)

They did nothing. In my opinion, they see light at the end of the tunnel. They didn't say they were purchasing any quantities of Mortgage Backed Securities. They are sticking to their dual mandate of employment and inflation. They are ready to act if needed.

Wednesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.

The vote was nearly unanimous, with just one dissenting voter. There were 3 dissenters at each of the FOMC's last two meetings.

In its press release, the Federal Reserve presented an improved outlook for the U.S. economy, noting that since its last meeting in September, there's new evidence that the economy "strengthened somewhat" in the third quarter.

One example cited is that consumer and business spending continues to rise while inflationary pressures on the economy remain modest. This indicates controlled growth -- a plus in a recovering economy.  
The economy remains slowed by a number of factors, though, as noted by the Fed :

1. "Continuing weakness" in the labor market
2. Softness in commercial real estate
3. A "depressed" housing market

In response to mixed economic conditions, the FOMC opted to "do nothing" today; it introduced no new monetary policy, and revised none of its existing market stimulus. The Fed re-iterated its plan to leave the Fed Funds Rate in its current range near 0.000 percent "at least until mid-2013″ and affirmed "Operation Twist" -- the program in which the Fed sells Treasury securities with a maturity of 3 years or less, and uses the proceeds to buy mortgage bonds with maturity between 6 and 30 years.

Mortgage market reaction to the FOMC statement has been negative this afternoon. Mortgage rates throughout New York are rising because analysts expected the Fed to launch new, bigger stimulus plans. It didn't. Rates may drift higher for the next few days, too.

Therefore, it today's mortgage rates fit your household budget, consider locking in a mortgage rate. Mortgage rates are very low right now, relative to history. It may not last. I tend to think they will remain low in a range.

The FOMC's next meeting -- its last scheduled meeting of the year -- is December 13, 2011.

I can only hope for economic improvement. Time will tell.

Till next time

The New York Real Estate Nurse

More Risk To Home Affordability : Friday's Jobs Report

What would I do? Lock, lock and double lock your rates today. It is always better to know what you have now, than later.

Within the next 48 hours, mortgage rates may get bouncy. The Federal Open Market Committee will adjourn from a 2-day meeting and October's Non-Farm Payrolls report is due for release.

Of the two market movers, it's the Non-Farm Payrolls report that may cause the most damage. Rate shoppers across new york would do well to pay attention.

Published monthly, the "jobs report" provides sector-by-sector employment data from the month prior. It's a product of the Bureau of Labor Statistics and includes the national Unemployment Rate.

In September, the economy added 103,000 jobs, and job creation from the two months prior was shown to be higher by 99,000 jobs higher than originally reported. This was a huge improvement over the initial August release which showed zero new jobs created.

When September's jobs report was released, mortgage rates spiked. This is because of the correlation between jobs and the U.S. economy. There are a lot of economic "positives" when the U.S. workforce is growing.

1. Consumer spending increases
2. Governments start more projects
3. Businesses make more investment

Each of these items leads to additional hiring, and the cycle continues.
Wall Street expects that 90,000 jobs were created in October 2011. If the actual number of jobs created exceeds this estimate, it will be considered a positive for the economy, and mortgage rates should climb as Wall Street dumps mortgage-backed bonds in favor of equities.

Conversely, if the number of new jobs falls short of 90,000, it will be considered a disappointment, and mortgage rates should rise. There are many factors that have an effect on mortgage-backed securities. Joblessness is only one factor and there are many more. One thing for sure is that when our economy starts to thrive again, mortgage rate will rise as they have done historically.

There is a lot of risk in floating a mortgage rate today. The Federal Reserve could make a statement that drives rates higher, and Friday's job report could do the same. If you're under contract for a home or planning to refinance, eliminate your interest rate risk.

Lock your mortgage rate today. As I would.

Till next time

The New York Real Estate Nurse

The Government's Revamped HARP Program For Underwater Homeowners

Here comes the neighborhood, the groundwork is being repaired.

Mr. Obama is supporting a program in effect and now we are spicing it up. Prime borrowers are the new problem. Its the people who pay on time that are now defaulting on their mortgage loans.

When mortgage rate were in the 6 plus percents, rates were considered low. People who were good earners and had good credit, bought homes. Today, they maybe out of work and find themselves struggling to make ends meet. Refinancing the mortgage would seriously help their monthly budget.

HARP is the word!

The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give "underwater homeowners" opportunity to refinance.

With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in the New York City area and nationwide who stand to benefit from the program overhaul.
To qualify for the re-released HARP program, you must meet 4 basic criteria :

1. Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
2. Your home must be a 1- to 4-unit property
3. You must have a perfect mortgage payment history going back 6 months
4. You may not have had more than one 30-day late payment on your mortgage going back 12 months 

Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners' participation in the program  are no longer restricted by their home's appraised value. In fact, the new HARP doesn't even require an appraisal, in most instances.

With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.
According to the government's press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.

If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.

• Fannie Mae loan lookup : http://www.fanniemae.com/loanlookup/
• Freddie Mac loan lookup : https://ww3.freddiemac.com/corporate/

If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.

The FHFA's official press release contains an FAQ section. In it, you'll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.

The HARP program is meant to help a wide group of homeowners, but each applicant's situation is unique. For specific HARP questions, be sure to talk with a loan officer.

I still see HOPE Mr. Obama. I say let people buy homes with their Retirement Accounts and forgive all penalties.

That's AMERICANA.

Till next time

The New York Real Estate Nurse

NEW YORK REAL ESTATE NURSE: How To Change Your Doorbell

NEW YORK REAL ESTATE NURSE: How To Change Your Doorbell: DING DONG, DING DONG. COME ON, ANSWER THE DOOR. NOBODY HOME? It is frustrating when the door bell isn't working. So replace it, its ti...

How To Change Your Doorbell

DING DONG, DING DONG.  COME ON, ANSWER THE DOOR. NOBODY HOME?
It is frustrating when the door bell isn't working. So replace it, its time.

When we move into a home, we make changes. Appliances get replaced, rooms get painted, and floors get refinished or recarpeted. Its part of how we make a home "ours".

One item we tend to skip, though, is the changing of the doorbell. In most  homes in Queens NY, the existing doorbell is "good enough".

Well, if you've ever had a mind to change your home's hard-wired doorbell system, the good news is that changing your doorbell is a simple, do-it-yourself project. Whether you want chimes, songs, or the traditional ding-dong, all you need is a screwdriver, some tape, and the new doorbell system.

This 2-minute video from Lowe's maps it out :

1. Cut the power to your doorbell from your circuit breaker
2. Unscrew the doorbell face plate
3. Replace the face plate with your new doorbell
4. Locate your in-home receiver and remove the chime system
5. Replace the chime system with your new system

The video also includes helpful tips such as how to use tape to prevent "losing" wires in your walls, and how to label your wires for faster re-wiring.

Changing a doorbell is a quick, 1-hour project. Use the video's guidance to make you don't miss a step.

Life is easy, don't call someone to repair something you can do yourself. Enough said. Go fix that doorbell.

Till next time

The New York Real Estate Nurse

Finding Truth In September & August's Housing Starts Report

Where do the months go? Time just fly's when your waiting for statistics to come out, and then you read into the report and you never know what your going to find.

Headlines in newspapers can be misleading -- especially with respect to housing figures. Media coverage of the most recent Housing Starts data serves as an excellent illustration.

Wednesday, the Census Bureau released its September Housing Starts report. In it, the government said that national Housing Starts rose 15 percent in September as compared to August 2011, tallying 658,000 units on a seasonally-adjusted annualized basis.

The September reading is the highest monthly reading since April 2010, the last month of last year's home buyer tax credit.

The sudden surge in starts is big news for a housing market that has struggled of late, and the press was eager to carry the story. Here is a sampling of some headlines:

• U.S. Housing Starts Rise 15%, Hit 17-Month High (MarketWatch)
• Home Building Jumps 15% in September (ABC)
• New Construction Surges In September (LA Times)

These headlines are each accurate. However, they're also misleading.

Yes, Housing Starts did surge in September, but if we remove the "5 or more units" grouping from the Census Bureau data -- the catgory that includes apartment buildings and condominium structures -- we're left with Single-Family Housing Starts and Single-Family Housing Starts rose just 1.7 percent last month.

That's a good number, but hardly a great one. And for home buyers and sellers throughout the New York City area and nationwide, it's the Single-Family Housing Starts that matter most. Individuals like you and I don't buy entire apartment buildings. Most often, we buy single-family homes. Therefore, that's the data for which we should watch.

The good news is that media tales work in both directions.

Building Permits dropped 5 percent last month when the volatile 5-unit-or-more-units category was included from the math. Isolating for single-family homes, we find that permits were unchanged.

This is good housing because 82% of homes begin construction within 60 days of permit-issuance, hinting at a steady, late-fall housing market.

The housing market should continue on it's undulating bottom. That what the statistics tell me.

Till next Time

The New York Real Estate Nurse